Hi malmoe, no probs, I'm just discussing the point you raised...

Hi malmoe, no probs, I'm just discussing the point you raised (its a quiet saturday arvo here at home).

The production figures I gave re SEA were presented by them in March, although they chose not to give updated production figures, instead quoting end of December quarter figures which were pre TXN takeover.

Having said that, as previously mentioned I dont put much stock in IP rates if they are 24 hr rates. I read the TXN announcements on those wells and I believe they are 24 hr rates, so within 90 days they will have declined from 1200 to 300 and 1880 to 460 boepd or thereabouts.

And dont forget, they are $9M wells, so assuming a netback of around $50/bbl, they would have to produce 180 mbbls of oil just to break even. At $250K/0.7 (to allow for failure rate of 30%) and a $50/bbl netback for MAD's shallow wells, they need to produce 7 mbbls to break even.

Cheers, Sharks.